What Happens if I Don’t Spend the Money in My HSA

We recently received a question from an account holder and we thought it would be beneficial to post the answer for anyone else who may be wondering the same thing.

“What happens if I don’t spend my entire HSA balance before the end of the year?”

One of the great benefits of Health Savings Accounts (HSAs) is that you will never lose the money in your account, even if you are unable to spend the funds by the end of the year. Since an HSA is a bank account in your name, the money will always be available to you and will continue to roll over from year to year.

Unlike other medical savings accounts, such as Flexible Spending Arrangements (FSAs), you don’t have to worry about trying to plan ahead and guess what your medical expenses will be for the upcoming year. You can change your payroll deduction amount for your HSA as frequently as you like, which makes it customizable and easy to adjust to the actual amount of your medical expenses during the year.

In fact, many HSA account holders maximize their contributions to ensure that they achieve the greatest tax savings while saving for future health care expenses. You can pay for any eligible expenses the following year, even if you are no longer on a High Deductible Health Plan (HDHP). This lets you earn interest or invest your HSA balance to increase your balance. Along the same lines, if you are interested to learn what happens to your HSA when you leave your employer, you can view this blog post.

To see answers for other HSA-related questions, check out our Health Savings Account (HSA) Expert Blog Series. If you have any questions, please feel free to contact our support team by phone at (866) 384-8549 or by email at

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